Sosandar, a fashion retailer, reports a substantial sales drop but manages to cut losses.
- First-half sales for Sosandar fall by 27%, down to £16.2 million from £22.2 million the previous year.
- Despite lower sales, Sosandar reduces its pre-tax loss to £0.7 million, compared to £1.3 million last year.
- The retailer expands its brick-and-mortar presence, opening new stores in the UK and Dublin.
- Sosandar adjusts its full-year revenue forecast, reducing it by £5 million while maintaining profit expectations.
In the first half of the financial year, women’s fashion retailer Sosandar experienced a significant decline in sales, with a 27% fall to £16.2 million from the previous year’s £22.2 million. However, the company successfully narrowed its pre-tax loss to £0.7 million, a notable improvement from the £1.3 million loss recorded in the same period last year.
During this period, Sosandar made strategic expansions into physical retail by opening its first three UK stores in Marlow, Chelmsford, and Gateshead’s Metrocentre. Additionally, they expanded their presence in Dublin by opening a store with Arnotts department store, having previously sold online through their website. This marks a pivotal step as Sosandar transitions towards becoming a true multichannel retailer.
Co-chief executives Ali Hall and Julie Lavington commented on this development as a significant milestone for the company. “The feedback on our product range and store environment from both new and existing customers has been fantastic, which shows the power of the Sosandar brand,” they stated. They also highlighted the strong footfall and conversion rates experienced in these new locations, along with increased online traffic from areas near their new stores.
Despite these advancements, Sosandar has revised its full-year revenue expectation downwards from its initial forecast by £5 million to a new target of £40 million. Nevertheless, its profit expectations remain unchanged. The company attributed this adjustment to the weak first-half performance, although October trading has commenced positively, with sales surpassing those of the previous year.
The period also saw Sosandar capitalize on robust performance from third-party partnerships, including collaborations with retail giants such as Next, M&S, and The Iconic in Australia. These partnerships have played a crucial role in supporting the company’s revenue and brand exposure during this challenging financial phase.
Sosandar’s strategic expansion and effective management have enabled it to mitigate losses and position itself for future growth, despite current sales challenges.
